Tesla Uses Shoddy Dealership Practices To Accelerate Model S and Model Y Sales

Tesla uses shoddy dealership practices to accelerate Model S and Model Y sales 6 photos
Photo: Tesla
Tesla price cuts are a punch in the gut to all other players in the EV arenaTesla price cuts are a punch in the gut to all other players in the EV arenaTesla price cuts are a punch in the gut to all other players in the EV arenaTesla price cuts are a punch in the gut to all other players in the EV arenaTesla price cuts are a punch in the gut to all other players in the EV arena
Tesla massively discounted its electric vehicle in a surprising move in early January. The price cuts have had a positive effect on sales, but Tesla doesn’t seem satisfied, at least in the case of the Model S and Model X. A new discount is in for people who trade in their cars for a Model S/X, but Tesla is less upfront about this offer.
If there’s one thing that people appreciate at Tesla is its transparent, no-haggle pricing policy. It doesn’t matter whether you want to buy a used EV or a new one, from inventory or a custom order; you know from the start how much it will cost you and how you will pay for the car. On the other hand, other carmakers are at the mercy of dealerships, which have a firm grip on the final price of a vehicle. They use hidden fees, price markups, and sometimes shoddy practices to force a price on you and make you pull the trigger on one of their cars.

Nevertheless, with Tesla becoming more of an established carmaker, it seems to learn from other carmakers’ and dealerships’ practices. Teslarati discovered that Tesla offers additional discounts or free Supercharging to people purchasing a Model S or Model X under certain conditions. The new offer is not for everybody, but only “select” customers on an invite-only basis.

Tesla Model S and Model X were some of the most discounted models in Tesla’s lineup. The former had its price dropped by $10,000 to $21,000, while the Model X got an $11,000-$19,000 discount. These price cuts are clearly not working as planned because Tesla is adding an additional $3,000 discount. This or three years of free Supercharging, with the condition that customers also trade in their Tesla. The interesting part is that this offer is not for everybody.

According to Teslarati, the offer is part of Tesla’s “Ownership Loyalty Offer,” which hints at efforts to keep existing customers loyal to the brand. Several Tesla owners who expressed interest in purchasing new vehicles either through trade-in value requests or test drives have received a follow-up call from an Ownership Loyalty Team member offering them the discount as long as the order is placed soon. How soon it’s unclear, but the offer is said to expire “in February” without specifying an exact date.

The new offer makes the Model S prices start at $91,990 for the Dual Motor variant ($111,990 for the Model S Plaid). The Model X price with the new offer is $106,990 (Dual Motor) and $116,990 (Plaid). We think these prices are aimed at people fancying switching to a Lucid Air, whose Pure trim will soon start at $87,400, albeit for a lesser trim with rear-wheel drive.

Tesla obviously doesn’t want to communicate the discount, and that’s why this is an invite-only offer. Although questionable, this practice is still better than what car dealerships offer their customers, considering the market adjustment fees and other horror stories. At least this one ends with a discount, not a price hike.
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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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